"Innovation in emerging markets" is an annual study by Deloitte's Global Manufacturing Industry Group which examines what is required for companies to succeed and realize the enormous market potential of the developing economies. The 2007 study captures the perspectives of over 440 senior executives across a broad spectrum of industry sectors, including automotive, industrial products, process, aerospace and defense, consumer durable and non-durable, life sciences and telecommunications manufacturers. This year's study examines the operational issues and successful strategies for establishing or expanding operations in five emerging markets: China, India, Southeast Asia, Latin America and Eastern Europe.

• Investment outlook: manufacturers continue to be bullish about China, but are also planning to invest in other emerging markets over the next five years.
• Talent management: the war for talent is becoming fierce as more and more companies compete for a smaller pool of talent in emerging markets.
• Risk management: locating operations in emerging markets brings increased risks in a variety of areas such
  intellectual property protection, geopolitical issues and legal/regulatory issues.
• Operating models: companies are trending towards a business model of wholly-owned operations in
  emerging markets, providing more autonomy at the local level.